IP News

IPR Piracy Situation Worsening
September 20, 2007

"The local entertainment industry is estimated to lose around P9.9 billion this year because of piracy, considering that about nine out of ten videos sold in the country are counterfeit, authorities quoted yesterday." (Business World, November 23, 2004)

The Optical Media Board (formerly the Videogram Regulatory Board) stated that the Philippines registered a piracy rate of 89% in 2003, fourth highest within the Asia-Pacific Region. In fact, the Philippines' piracy rate for the entertainment sector has increased from 80% in 2002.

Figures of losses in the whole entertainment industry were shown to be increasing dramatically in the recent years, largely due to technological advances. Replicating machines allow unscrupulous entities to copy the entire contents of video and music discs (in CD, VCD and DVD formats) to a blank disc at the enormous rate of around one CD every four seconds. This amounts to a production capacity of at least 15 counterfeit discs every minute.

Along with the losses in the entertainment industry, the Philippine government itself sustains major losses due to lost taxes, particularly the 30% amusement tax and the 10% value-added tax, amounting to an estimated PhP800 million a year.

The far-reaching effects of piracy may also be blamed as a cause for the stunting of the creativity of local artists. A local singer and producer was quoted as saying that it would now be "suicide" to produce an album in the country, which would require an investment of at least PhP600,000.00. "It's like throwing away money," he said.

OMB Chairman Edu Manzano, himself a movie personality, announced that he would launch a "widespread crackdown" on fake videos "until pirates feel the full impact." 

Although the actual "delisting" of the Philippines from the United States' Special 301 Priority Watchlist of IPR violators was a "tall order," Mr. Manzano said that the OMB's immediate goal was for the Philippines to rank better on the US Watchlist.

Secretary of Trade and Industry Cesar A. V. Purisima urged shopping mall owners to take a pro-active stand to help the government's anti-piracy campaign by banning the sale of pirated products.

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